- Back in September last year, we had the CME Group announce that they were launching bitcoin options on futures.
- Following this, the group has opened its options market for investors and traders.
Back in September last year, we had the CME Group announce that they were launching bitcoin options on futures. Following this, the group has opened its options market for investors and traders and they took to Twitter to say:
“Now Available: Options on Bitcoin futures offer greater capital efficiencies and a new way to manage bitcoin exposure.”
CME Group was the first one to reveal the launch of a regulated Bitcoin options market but despite this, Bakkt ended up taking over the actual product delivered by opening its platform for Bitcoin options on top of its Bitcoin Monthly Futures contract in December.
The options trading is considered to be a very risky trade, and rightly so. Not only is it volatile but the sentiment around it has seen big changes over the past couple of months.
The co-founder of CoinGecko, Bobby Ong has spoken on the matter as he is quoted saying:
“This is probably one factor but I think there are other reasons in play too. There is usually heavy price volatility each time we lead to CME’s contract expiry on the last Friday of the month at 4pm London time.”
The options market is said to see a bullish response after ti is launched though. According to Ong, when you consider the futures market not being able to build up to the hype, he says it will grow by up to twenty per cent.
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!